Toll Brothers Inc (TOL)

Working capital turnover

		Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020
Revenue (ttm)	US$ in thousands	10,846,740	10,533,430	10,493,130	10,162,620	9,994,940	10,686,920	10,494,080	10,264,640	10,275,550	9,604,800	9,365,480	9,018,060	8,790,360	8,292,210	7,688,220	7,320,140	7,088,190	6,946,910	7,061,110	7,216,310
Total current assets	US$ in thousands	1,303,040	893,422	1,030,530	754,793	1,300,070	1,033,370	761,945	791,609	1,346,750	316,471	535,038	671,365	1,638,490	946,097	714,968	949,696	1,370,940	559,348	741,222	519,793
Total current liabilities	US$ in thousands	187,905	125,417	127,541	63,194	106,036	70,517	102,489	71,187	317,411	113,705	113,688	101,615	155,559	148,655	146,932	112,619	155,202	122,189	106,018	97,653
Working capital turnover		9.73	13.72	11.62	14.69	8.37	11.10	15.91	14.25	9.98	47.37	22.23	15.83	5.93	10.40	13.53	8.74	5.83	15.89	11.12	17.09

October 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $10,846,740K ÷ ($1,303,040K – $187,905K)
= 9.73

The working capital turnover for Toll Brothers Inc fluctuated over the analyzed period. It ranged from a low of 5.83 to a high of 47.37. The working capital turnover measures how efficiently the company is using its working capital to generate sales revenue. A higher working capital turnover indicates that the company is effectively managing its working capital to support its sales activities.

The trend of the working capital turnover for Toll Brothers Inc shows some volatility, with some periods exhibiting significant increases or decreases compared to the previous period. This could be due to various factors such as changes in sales volume, inventory management, or accounts receivable and accounts payable practices.

Overall, a working capital turnover ratio of 9.73 to 47.37 suggests that Toll Brothers Inc is effectively utilizing its working capital to support its revenue generation activities. Further analysis and comparison with industry averages or competitor ratios would provide more insight into the company's working capital efficiency.